Accounting

31. The bonus to be paid under the Rowan Scheme is determined as follows:
A. Half the time saved, multiplied by the hourly rate.
B. Time taken, divided by time allowed, multiplied by both the time saved and the hourly rate.
C. One third the time saved, multiplied by the hourly rate.
D. Hours worked, multiplied by the hourly rate.

32. An Accountant in public practice can offer all the following services, EXCEPT
A. Preparation of Annual Financial Statements.
B. Corporate financial advice.
C. Taxation.
D. Performing executive accounting functions.

33. The scope and nature of an auditor’s contractual obligation to a client is set out in the
A. Management letter.
B. Scope paragraph of the auditor’s report.
C. Engagement letter.
D. Circularisation letter.

34. An auditor, who is expected to practise the profession, should be
A. A body corporate.
B. An officer of the company.
C. A member of a recognised professional accountancy body.
D. A servant of the company.

35. Which Agency of Government is responsible for the taxation of Limited Liability Companies in
Nigeria?
A. Education Tax Fund Office.
B. Federal Inland Revenue Service Board.
C. Federal Inland Revenue Service.
D. State Internal Revenue Service.

36. The title of the head of the Federal Inland Revenue Service Board is
A. Executive Chairman.
B. President.
C. Director.
D. Director-General.

37. The legislations, passed by Acts of National and State Assemblies and Bye-laws by Local Government
authorities in a democratic government, are called
A. Statute laws.
B. Common laws.
C. General laws.
D. Government laws.

38. Ola Enterprises commenced business on 1st March, 2011 and it prepared its accounts to 31st
October each year. The basis period for the determination of the assessable profit for the first tax
year is
A. 1s. March, 2011 to 31st December, 2011.
B. 1st March, 2012 to 31st December, 2012.
C. 1st March, 2011 to 31st October, 2011.
D. 1st March, 2010 to 31st December, 2011.

39. What is the accounting principle that states “Anticipate no profit but provide for all possible losses”?
A. Accrual concept.
B. Matching concept.
C. Prudence concept.
D. Realisation concept.

40. Which of the following source documents is received from a supplier of goods in relation to
goods returned by a customer?
A. Return inward note.
B. Credit note.
C. Debit note.
D. Return outward note.

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